A fall in the heavyweight energy group on the back of weaker crude prices pushed Toronto stocks a bit lower on Friday, but a surge in the tech sector, inspired by strong Hewlett-Packard Co earnings, limited losses.
The Toronto Stock Exchange's S&P/TSX composite index closed down 10.98 points, or 0.10 percent, at 10,722.10. The main index finished the week up 0.5 percent.
"I think investors are still undecided about where the energy group as a whole goes from here," said Elvis Picardo, chief market strategist at Global Securities Corp.
"It certainly has had sharp declines from its highs, but at the same time valuations are quite attractive."
Oil dropped briefly below $56 a barrel for the first time in five months on Friday, before settling down 20 cents to $56.14, as unseasonably warm weather has allowed US refiners to pile up crude and oil products, easing fears of a winter supply crunch.
Toronto's heavyweight energy group fell 1.08 percent.
Canadian Natural Resources lost C$1.20, or 2.18 percent, to C$53.80, while Husky Energy fell 71 Canadian cents, or 1.25 percent, to C$56.05, and Imperial Oil dropped C$1.31, or 1.2 percent, to C$107.45.
Overall, seven of the TSX's 10 main groups closed higher, with the information technology group gaining 0.83 percent, followed by the healthcare group, up 0.53 percent. In the technology group, Nortel Networks added 11 Canadian cents, or 3.12 percent, to C$3.63, while Celestica gained 28 Canadian cents, or 2.5 percent, to C$11.49.
On Thursday, US computer giant Hewlett-Packard posted a quarterly profit that was above expectations sue to strong gains in its server and storage business and a healthy rise in PC sales.
The materials group rose 0.14 percent as a 0.28 percent dip in the gold issues was offset by a 0.93 percent rally in the base-mining sector.
Zinc miner Teck Cominco Ltd gained C$1.50, or 3 percent, to C$51.40, while Falconbridge added 44 Canadian cents, or 1.26 percent, to C$35.34.
Financial issues gained a modest 0.04 percent, ahead of their yearend reporting period, which begins next week.
Bank of Montreal rose 59 Canadian cents, or just over 1 percent, to C$58.84, while Royal Bank of Canada slipped 34 Canadian cents, or 0.4 percent, to C$85.69, and Toronto-Dominion Bank finished flat at C$58.
The sector has gained more than 4 percent so far in November.
"The energy group has held center-stage for quite a while, and now we see some leadership taken by the financials and it's a good thing," Picardo noted.
US stocks rose, boosted by positive news from Hewlett-Packard and by declining oil prices.
The Standard & Poor's 500 Index rose 5.47 points, or 0.44 percent, to end at 1,248.27, its highest since June 2001.
The Nasdaq Composite Index was up 6.61 points, or 0.30 percent, at 2,227.07, also its highest close in more than four years.
The Dow Jones industrial average closed up 46.11 points, or 0.43 percent, at 10,766.33, its highest since March.
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